The following income statement applies to Zachary Company for the current year: Required a. Use...
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The following income statement applies to Zachary Company for the current year: Required a. Use the contribution margin approach to calculate the magnitude of operating loverage. b. Use the operating loverage measure computed in Requirement a to determine the amount of net income that Zachary Company wil earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales fevenue. The sales price is not affected. c-2. Calculate the percentage change in not incame for the two income statements. Complete this question by entering your answers in the tabs below. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected. The following income statement applies to Zachary Company for the current year: Required a. Use the contribution margin approach to calculate the magnitude of operating loverage. b. Use the operating loverage measure computed in Requirement a to determine the amount of net income that Zachary Company wil earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales fevenue. The sales price is not affected. c-2. Calculate the percentage change in not incame for the two income statements. Complete this question by entering your answers in the tabs below. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected
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